On January 20, Shanghai released the "Action Plan for Strengthening Futures-Spot Linkage and Enhancing the Capability Level of Nonferrous Metals Commodities." The plan aims to bolster interconnected development between markets, collectively improve Shanghai's resource allocation capacity and global pricing influence for nonferrous metals commodities, and support the city's construction of "Five Centers." According to the Shanghai Municipal Financial Office, the Action Plan primarily consists of three parts encompassing 18 specific measures.
The plan promotes interoperability within the nonferrous metals market and encourages the integrated development of futures, spot, and derivatives markets. It supports the Shanghai Clearing House and the Shanghai Futures Exchange in exploring communication and exchanges in clearing and risk management. Furthermore, it backs local nonferrous metals spot trading platforms in utilizing the Commodity Clearing Link for fund clearing and settlement, thereby enhancing the efficiency and security of spot market settlements. The plan also encourages various types of nonferrous metals application enterprises, such as those in automotive production, construction, and home appliance manufacturing, to participate in futures and over-the-counter derivatives markets to better manage price risks. Focusing on market participants, from infrastructure to实体企业, the Action Plan strengthens the linkage between futures, spot, and derivatives to elevate the service level of nonferrous metals commodities for the real economy.
The initiative seeks to enhance the internationalization level of nonferrous metals commodity futures and spot markets, thereby strengthening the influence of the "Shanghai Price." It proposes expanding the high-level institutional openness of Shanghai's nonferrous metals futures market by gradually including eligible nonferrous metals commodity futures and options varieties into the scope of对外开放品种, concurrently improving business rules compatible with these open varieties. Active exploration of cross-border delivery mechanism innovation is encouraged, deepening the "going global" of delivery services. This includes, under controllable risk, implementing business models for establishing overseas warehouses and conducting cross-border delivery operations. Leveraging Shanghai's financial infrastructure, the Action Plan aims to boost the international influence of nonferrous metals commodities and enhance the clout of the "Shanghai Price."
The plan focuses on aggregating market entities and fostering a robust nonferrous metals market ecosystem. It aims to cultivate trade entities with comprehensive competitiveness and promote cooperation between commodity enterprises and upstream and downstream players in the industrial chain. The application of blockchain technology in the nonferrous metals sector will be expanded to facilitate more extensive data sharing across platforms, institutions, and regions. Support is also directed towards warehouse receipt legislation, exploring ways to establish the effectiveness and authority of a comprehensive warehouse receipt registration system through such legal frameworks. The Action Plan drives various market participants to form a synergistic force, aiding in elevating the influence of Shanghai's nonferrous metals industry.
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